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Your tax assessment notice is now available in E-tax (TastSelv, our self-service system). This means that you can enter your business profit or loss in your tax assessment notice. Once you have done so and accepted your tax assessment notice, you can see if will have to pay outstanding tax or if you are entitled to a tax refund.

The deadline for entering your business profit or loss is 1 July 2022.

You pay tax on your business by entering your expected profit or loss in your preliminary income assessment. If your profit or loss changes, you can change it accordingly in your prelimiary income assessment.

Enter your profit or loss in box 111 or 112 in your tax assessment notice

Enter your expected profit or loss in field 221 or 435 in your preliminary income assessment

You must file your tax return, including your final profit or loss, by 1 July.

Please note that you must complete and accept your tax return even if you have nothing to add to the information listed in your service letter.

You have to file your tax return if you:

  • are self-employed
  • have non-Danish income or property
  • own rental property that you do not live in personally
  • are an artist and covered by the income equalisation scheme for artists
  • operate with an irregular financial year
  • own shares in investment project partnerships (ordinary or limited) (anparter) which are not subject to the rules governing such shares.

Have you just started your business?

At our Danish website we offer help and tools especially for newly established business at Start-up with skat. Currently, the site is in Danish only.

Learn about preliminary tax assessment and regular tax payments (in Danish)

 Step-by-step guide to filing your tax return

This is what you do

Log on to E-tax  

  1. Click 'Ret årsopgørelsen/selvangivelsen' (Change your tax assessment notice/tax return).
  2. Certain figures in your tax return will be pre-printed. Consider if these figures are correct and make relevant corrections.
  3. Click 'Næste' (Next) to enter your business profit in box 111 or your loss in box 112. Check to see if you need to complete other relevant fields.
  4. Scroll down to ‘Regnskabsoplysninger' (Accounting information) and click ‘Oplys' (Make your declaration). Complete relevant fields.
  5. Click 'Gem' (Save). You will be asked if you want to enter information for other businesses. If not, click 'Tilbage' (Back).
  6. Consider if you need to enter any other information in your tax return. Remember that your tax return applies to both your business and your private financial situation.
  7. Click 'Næste' (Next) and then 'Godkend' (Accept).
  8. Once you have completed your tax return, you will see a receipt and you can see your tax assessment notice. If something is incorrect, you will be prompted to complete missing information before your tax assessment notice can be generated.
  9. Your tax assessment notice will show if you have paid too much tax and are entitled to a refund of overpaid tax or if you have paid too little tax.

See how to file your tax return in the video below.

If you forget to enter required data or if the entered data is incorrect, you will be asked to enter/correct the relevant data before a tax assessment notice can be generated.

See the video below, 'How to do your tax accounts', to find the figures you need to enter in your tax return.

Accounting information

You should state your business result, interest and certain accounting records. If your turnover is less than DKK 300,000, you only have to state the following:

  • CVR no. (business reg. no.).
  • VAT payable or VAT receivable, if you are registered for VAT.
  • If your business is exempt from submitting accounting records - you state this in box 301 and possibly in box 302.
  • Information about accounting assistance.

If your turnover has exceeded DKK 300,000, you need to provide more accounting information. Please see this guide (in Danish) for further information about such accounting information.

If you are no longer self-employed or have stopped rent out property

If during 2021, you stopped being self-employed, renting out property or other activities requiring you to submit a tax return, you should still submit the tax return.

  • In box 71, you should state that your business has been closed, and in box 111 you enter your profit or you enter your loss in box 112.
  • You should deregister your CVR number at www.indberet.virk.dk.
  • In your preliminary income assessment for 2022, you should delete amounts relating to self-employment in fields 221 and 435 and any other relevant fields. Otherwise, you may have to file a tax return again next year before a tax assessment notice can be created for you.

Change your preliminary income assessment

Closing down a business

If you want to apply for an extend deadline for filing your tax return

From the middle of March until the deadline on 1 July, you can apply to have the deadline for filing your tax return extended in case of special circumstances. Please note that the deadline has been extended to 1 September 2021.

If you do not meet the filing deadline

If you do not meet the filing deadline, you will be charged a penalty for late filing of DKK 200 for each day you miss the deadline. However, the maximum of such a penalty is DKK 5,000. If your taxable income is less than DKK 544,800 (2021), the penalty is DKK 100 for each day you miss the deadline and maximum DKK 2,500.

You can apply to be fully or partially exempt from this penalty if special circumstances are the reason you have not filed your tax return.

If so, you need to inform us of such special circumstances and submit relevant information for us to consider.

Request exemption from tax penalty (Ansøgning om fritagelse for skattetillæg) (in Danish only)

Paying tax on your business on a regular basis

You pay tax on your business on a regular basis by entering your expected profit or loss in your preliminary income assessment.

You must pay tax on a sale when you issue the invoice. Even if you have not been paid. This way you ensure that your tax is paid on a regular basis.

Adjusting according to your financial situation

Please note that you can change your preliminary income assessment if the profit or loss of your business changes. The more precise your preliminary income assessment is, the more unlikely it is that you have to pay outstanding tax at the end of the year.

In March, you enter your final proft or loss in your tax assessment notice/tax return. Once you have completed and accepted your tax return, you will receive your tax assessment notice telling you if you are entitled to a tax refund or if you have to pay outstanding tax.

Have you just started your business?

At our Danish website we offer help and tools especially for newly established business at Start-up with skat. Currently, the site is in Danish only.

Learn about preliminary tax assessment and regular tax payments (in Danish)

Or join us at our information meetings and recorded webinars on tax and VAT for newly established businesses.

Sign up for information meetings and see our video on tax and VAT

Changing your preliminary income assessment

You are taxed on a sale at the time you issue the invoice, even if you have not been paid yet. This is a way of ensuring that your tax is paid on an ongoing basis.

You can change your preliminary income assessment if your business profit or loss changes. If you adjust your preliminary income assessment to be as precise as possible, you will reduce the risk of having to pay outstanding tax at the end of the year. Your tax return is available in March. Once you have completed and accepted it, you will see your tax assessment notice, which states whether you have paid too little tax of if you are entitled to a refund.

As an alternative to paying tax according to the general tax rules, you can choose to be taxed according to the return on capital tax scheme or the business tax scheme. Both schemes require lot of accounting work on your part, and it is usually a good idea to leave it to an accountant.

Business tax scheme

The business tax scheme enables you to:

  • have your business interest expenses taxed as personal income and not as capital income. By doing so you pay less labour market contributions (am-bidrag) and possibly less top-bracket tax than according to the general tax rules.
  • save up in your business against paying tax on an ongoing basis. This means you can save up in good years and withdraw saved up profits in bad years.

If you save up in your business, you will be taxed at a rate of 22% on the part of the profit that you save up. When you withdraw an amount from the savings, you are taxed as for personal income, and the tax you have already paid will be deducted.

If you opt for the business tax scheme, you will have to separate your personal finances from your business finances. You can choose to be taxed under the business tax scheme in your preliminary income assessment by ticking field 184, but the actual choice is not made until when you complete your tax return (by ticking box 147).

Return on capital tax scheme

The return on capital tax scheme may be a good alternative to the business tax scheme as this scheme is easier to manage.

A return on capital tax is calculated, which is taxed as income from capital instead of personal income. By doing so you pay less labour market contributions and possibly less top-bracket tax than according to the general tax rules.

The return on capital cannot be more than the largest of the following two amounts:

  • Profit from business or
  • The total negative income from capital (excluding the calculated return on capital)

You can choose to be taxed under the return on capital tax scheme in your preliminary income assessment by ticking field 184. However, you do not make your final decision about the scheme until you complete your tax return which is available in early March. You should complete box 141 under ‘Virksomhedsoplysninger' (Business information).

A company is taxed separately on its profit/loss and you will be considered an employee.

Read more about companies and funds.

 

Please see our legal guide (in Danish) for further legal information.